Chapter 18: Managing Mass Communication

Advertising, Sales Promotions, PR &

Events
 Advertising

Advertising is any paid form of non-personal presentation and

promotion of ideas, goods, or services by an identified sponsor
 Setting Advertising Objective

• An advertising objective is a specific communication task to

be accomplished with a specific target audience during a
specific time
• Objectives are classified by primary purpose
• Inform
• Compare
• Persuade
• Remind
 Types of Advertising

• Informative advertising is used when introducing a new

product category; the objective is to build primary demand
• Comparative advertising directly or indirectly compares the
brand with one or more other brands
• Persuasive advertising is important with increased competition
to build selective demand
• Reminder advertising is important with mature products to
help maintain customer relationships and keep customers
thinking about the product
 Advertising Budget

• Factors to consider when setting the budget

• Product life-cycle stage
• Market share
 Advertising Budget

• Product life-cycle stage

• New products require larger budgets
• Mature brands require lower budgets
• Market share
• Building or taking market share requires larger budgets
• Markets with heavy competition or high advertising clutter
require larger budgets
• Undifferentiated brands require larger budgets
 Advertising Strategy

• Advertising strategy is the strategy by which the company

accomplishes its advertising objectives and consists of:
• Creating advertising messages
• Selecting advertising media
 Advertising - Creating the Advertising Message

• Advertisements need to break through the clutter:

• Gain attention
• Communicate well
Advertising - Creating the Advertising Message
 Advertising - Creating the Advertising Message
• Message strategy is the general message that will be
communicated to consumers
• Identifies consumer benefits
 Advertising - Creating the Advertising Message

• Creative concept is the idea that will bring the message strategy
to life and guide specific appeals to be used in an advertising
campaign
• Characteristics of the appeals include:
• Meaningful
• Believable
• Distinctive
 Developing the Advertising Campaign
• Message generation and evaluation
• Creative development and execution
• Legal and social issues
 Creative Brief

• Positioning statement • Brand promise

• Key message • Evidence of promise
• Target market • Media
• Objectives • Background
• Key brand benefits • Creative considerations
Advertising - Creating the Advertising Message
• Message execution is when the advertiser turns the big idea into
an actual ad execution that will capture the target market’s
attention and interest.
• The creative team must find the best approach, style, tone,
words, and format for executing the message.
Advertising - Creating the Advertising Message
Execution Styles
 Advertising - Creating the Advertising Message

• Message execution also includes:

• Tone
• Positive or negative
• Attention-getting words
• Format
• Illustration
• Headline
• Copy
Advertising - Creating the Advertising Message

Consumer Generated Messages

•YouTube videos
•Brand Website contests
•Positives
• Low expense
• New creative ideas
• Fresh perspective on brand
• Boost consumer involvement
 Selecting Advertising Media

Major steps include:

• Deciding on reach—frequency—impact
• Selecting media vehicles
• Deciding on media timing
 Selecting Advertising Media

• Reach is a measure of the percentage of people in the target

market who are exposed to the ad campaign during a given
period of time

• Frequency is a measure of how many times the average

person in the target market is exposed to the message

• Impact is the qualitative value of a message exposure through

a given medium
 Selecting Advertising Media

• Selecting media vehicles involves decisions presenting the

media effectively and efficiently to the target customer and must
consider the message’s:
• Reach
• Frequency
• Impact
• Exposure
 Choosing Among Major Media Types
• Target audience and media habits
• Product characteristics
• Message characteristics
• Cost
 Selecting Advertising Media

• When deciding on media timing, the planner must consider:

• Seasonality

• Pattern of the advertising

• Continuity—scheduling within a given period
• Pulsing—scheduling unevenly within a given period
 Major Media Types
• Newspapers • Outdoor
• Television • Yellow Pages
• Direct mail • Newsletters
• Radio • Brochures
• Magazines • Telephone
• Internet
 Television
Advantages Disadvantages
• Reaches broad spectrum of • Brief
consumers • Clutter
• Low cost per exposure • High cost of production
• Ability to demonstrate product • High cost of placement
use • Lack of attention by viewers
• Ability to portray image and
brand personality
 Print Ads
Advantages Disadvantages
• Detailed product information • Passive medium
• Ability to communicate user • Clutter
imagery • Unable to demonstrate
• Flexibility product use
• Ability to segment
 Print Ad Evaluation Criteria
• Is the message clear at a glance?
• Is the benefit in the headline?
• Does the illustration support the headline?
• Does the first line of the copy support or explain the headline and
illustration?
• Is the ad easy to read and follow?
• Is the product easily identified?
• Is the brand or sponsor clearly identified?
 Evaluating Effectiveness and Return on
Investment

• Communication effects indicate whether the ad and media

are communicating the ad message well and should be tested
before or after the ad runs
• Sales and profit effects compare past sales and profits with
past expenditures or through experiments
 Other Advertising Considerations

• Organizing for advertising

• Agency versus in-house

• International Advertising Decisions

• Standardization
SALES PROMOTION
 What is Sales Promotion?

Sales promotion consists of a collection of incentive tools, mostly

short term, designed to stimulate quicker or greater purchase of
particular products or services by consumers or the trade.
 Sales Promotion Tactics
Consumer-directed Trade-directed
• Samples • Price offs
• Coupons • Allowances
• Cash refund offers • Free goods
• Price offs • Sales contests
• Premiums • Trade shows
• Prizes • Specialty advertising
• Patronage rewards
• Free trials
• Tie-in promotions
 Using Sales Promotions
• Establish objectives
• Select tools
• Develop program
• Pretest
• Implement and control
• Evaluate results
 Discussion

Many companies offer free samples as part of a promotional

campaign. This approach extends beyond the grocery store or retail
outlet into large organizations like universities. Can you identify any
products or services that are provided
to students or faculty at
your school as part of a
promotional campaign?
 Major Consumer-Promotion Tools

Samples: Offer of a free amount of a product or service delivered door

to door, sent in the mail, picked up in a store, attached to another
product, or featured in an advertising offer.
Coupons: Certificates entitling the bearer to a stated saving on the
purchase of a specific product: mailed, enclosed in other products or
attached to them, or inserted in magazines and newspaper ads.
Cash Refund Offers (rebates): Provide a price reduction after
purchase rather than at the retail shop: consumer sends a specified
“proof of purchase” to the manufacturer who “refunds” part of the
purchase price by mail.
Price Packs (cents-off deals): Offers to consumers of savings off the
regular price of a product, flagged on the label or package. A reduced-
price pack is a single package sold at a reduced price (such as two for
the price of one). A banded pack is two related products banded
together (such as a toothbrush and toothpaste).
 Major Trade-Promotion Tools

Price-Off(off-invoice or off-list): A straight discount off the list price

on each case purchased during a stated time period.
Allowance: An amount offered in return for the retailer’s agreeing
to feature the manufacturer’s products in some way. An advertising
allowance compensates retailers for advertising the manufacturer’s
product. A display allowance compensates them for carrying a special
product display.
Free Goods: Offers of extra cases of merchandise to intermediaries
who buy a certain quantity or who feature a certain flavor or size
 Business and Sales Force Promotion Tools

Trade Shows and Conventions: Industry associations organize

annual trade shows and conventions. Business marketers may
spend as much as 35 percent of their annual promotion budget on
trade shows. Participating vendors expect several benefits, including
new sales leads, maintaining customer contacts, introducing new
products, meeting new customers, selling more to present
customers, and educating customers with publications, videos, and
other audiovisual materials.
Sales Contests: A sales contest aims at inducing the sales force or
dealers to increase their sales results over a stated period, with
prizes (money, trips, gifts, or points) going to those who succeed.
 Sales Promotion

• Developing the Program

• Incentive Considerations
• Size of incentive
• Conditions for participation
• Duration of promotion
• Distribution vehicle
• Presenting, Implementing, Controlling,
and Evaluating the Program
• Lead time
• Sell-in time
 Public Relations
Public relations involves building good relations with the
company’s various publics by obtaining favorable publicity,
building up a good corporate image, and handling or
heading off unfavorable rumors, stories, and events

Public relations is used to promote product, people, ideas, and

activities
 Public Relations

Public relations department functions include:

• Press relations or press agency
• Product publicity
• Public affairs
• Lobbying
• Investor relations
• Development
 Public Relations

• Press relations or press agency involves the creation and

placing of newsworthy information to attract attention to a
person, product, or service

• Product publicity involves publicizing specific products

• Public affairs involves building and maintaining national or

local community relations
 Public Relations
• Lobbying involves building and maintaining relations with
legislators and government officials to influence legislation
and regulation
• Investor relations involves maintaining relationships with
shareholders and others in the financial community
• Development involves public relations with donors or
members of nonprofit organizations to gain financial or
volunteer support
 Role and Impact of Public Relations

• Lower cost than advertising

• Stronger impact on public awareness than advertising
Major Public Relations Tools
 Why Sponsor Events?
• To identify with a particular target market or life style
• To increase brand awareness
• To create or reinforce consumer perceptions of key brand
image associations
• To enhance corporate image
• To create experiences and evoke feelings
• To express commitment to community
• To entertain key clients or reward employees
• To permit merchandising or promotional opportunities
 Using Sponsored Events
• Establish objectives
• Choose events
• Design programs
• Measure effectiveness
 Ideal Events
• Audience closely matches target audience
• Event generates media attention
• Event is unique with few sponsors
• Event lends itself to ancillary activities
• Event enhances brand image of sponsor
Chapter 20: Managing Personal Communication

Direct Marketing & Personal Selling

 Session Questions

• How can companies integrate direct marketing for competitive

advantage?
• How can companies do effective interactive marketing?
• How can marketers best take advantage of the power of word of
mouth?
• What decisions do companies face in designing and managing a
sales force?
• How can salespeople improve selling, negotiating, and
relationship marketing skills?
Cokes Embraces Interactive Marketing with
[Link]
 What is Direct Marketing?

Direct marketing is the use of consumer-direct channels to reach

and deliver goods and services to customers without using market
middlemen.
 Direct Marketing Channels

Direct mail

Catalogs

Telemarketing

Other direct response

Constructing a Direct-Mail Campaign

Establish objectives

Select target prospects

Develop offer elements

Test elements

Execute

Measure success
Formula for Selecting Prospects

Recency
Recency

Frequency
Frequency

Monetary
Monetary value
value
 Elements of the Offer Strategy

• Product
• Offer
• Medium
• Distribution method
• Creative strategy
 Components of the Mailing
• Outside envelope
• Sales letter
• Reply form
• Reply envelope
Types of Telemarketing

• Telesales
• Telecoverage
• Teleprospecting
• Customer service and technical
support
Other Media for Direct Response

Television
• Direct Response
Advertising
• At-home shopping
channels
• Kiosks
Public Issues in Direct Marketing

Irritation
Irritation

Unfairness
Unfairness

Deception/fraud
Deception/fraud

Invasion
Invasion of
of privacy
privacy
 Interactive Marketing
• Tailored messages possible
• Easy to track responsiveness
• Contextual ad placement possible
• Search engine advertising possible
• Subject to click fraud
• Consumers develop selective attention
 Online Promotional Opportunities
• Websites • Sponsorships
• Microsites • Alliances and affiliate
• Search ads programs
• Display ads • Online communities
• Interstitials • Email
• Internet-specific ads and • Mobile marketing
videos
 e-Marketing Guidelines
• Give the customer a reason to respond
• Personalize the content of your emails
• Offer something the customer could not get via direct mail
• Make it easy for customers to unsubscribe
Word-of-Mouth Marketing is Empowered by Social
Networks
 How to Start Buzz

• Identify influential individuals and companies and devote extra

effort to them
• Supply key people with product samples
• Work through community influentials
• Develop word-of-mouth referral channels to build business
• Provide compelling information that customers want to pass
along
Designing a Sales Force

Sales force objectives

Sales force strategy

Sales force structure

Sales force size

Compensation
Types of Sales Representatives

• Deliverer
• Order taker
• Missionary
• Technician
• Demand creator
• Solution vendor
Managing the Sales Force

Recruiting, selecting

Training

Supervising

Motivating

Evaluating
 Workload Approach to Determining Sales Force
Size
• Customers are grouped into size classes
• Desirable call frequencies are established
• Number of accounts in each size class multiplied by call frequency
• Average number of calls possible per year established
• Number of reps equal to total annual calls required divided by
number possible
Components of Sales Force Compensation

Fixed amount

Variable amount

Expense allowances

Benefits
 Principles of Personal Selling

• Situation questions
• Problem questions
• Implication questions
• Need-payoff questions
Steps in Effective Selling

Prospecting/Qualifying

Preapproach

Approach

Presentation

Overcoming objections

Closing

Follow-up
Thank You